October 2022
M T W T F S S
 12
3456789
10111213141516
17181920212223
24252627282930
31  
Sports

World Cup 2023: Finance Ministry levies 21% tax, BCCI could lose Rs 800 Cr: Check WHY?


World Cup 2023: BCCI Tax Issue: The Board of Control for Cricket in India (BCC) has been put in a spot of…

World Cup 2023: BCCI Tax Issue: The Board of Control for Cricket in India (BCC) has been put in a spot of bother. The Finance Ministry has revised taxation on sporting events and a 21% tax will be charged for the 50-over World Cup in 2023. The rate was earlier 10% and the jump in the tax rate may see BCCI losing staggering Rs 800 Crore from ICC revenue. Follow all cricket live updates with InsideSport.IN

In the last T20 World Cup in India, it was significantly less at 10 percent.  The World Cup is scheduled to be played in India from November 2023. A report in Cricbuzz states that the Ministry of Finance has already informed everyone concerned relating to the tax percent that will be levied for the next year’s event.

World Cup 2023: BCCI in a fix as Finance Ministry levies 21 percent tax, might have to cough up Rs 800 crore: Check WHY?

Rajeev Shukla to STEP DOWN from BCCI Vice President role after taking oath as Rajya Sabha MP, announcement likely on July 21: Follow Live Updates

World Cup 2023: BCCI in a fix as Finance Ministry levies 21 percent tax, might have to cough up Rs 800 crore: Check WHY?

World Cup 2023: BCCI in a fix as Finance Ministry levies 21 percent tax, might have to cough up Rs 800 crore: Check WHY?

But as the World Cup 2023 is set to be valued at $500 million, the tax amount will go over $100 million or Rs 800 Crore. As per the current norm, the ICC expects a tax-free World Cup in host countries. It is up to the hosting boards to negotiate a better deal with the government.

However, this is not the first time that issues of taxation have come to the forefront. Before the T20 World Cup 2016 in India, there were fears that the competition might not be played in India due to tax issues. The ICC even threatened to take the competition out of India, but it was sorted on time for India to keep the hosting rights.

CWG 2022 LIVE Broadcast: Sony Sports gets EXCLUSIVE RIGHTS to broadcast Commonwealth Games LIVE in India: Follow CWG 2022 LIVE

World Cup 2023: Why higher tax rate is a problem?

  • Although it benefits the government, it is a loss for the broadcaster, the host board and the ICC.
  • For T20 World Cup 2016, the tax rate was 10%. The ICC clearly stated that if the international body had to pay the 10% tax, it will be deducted from BCCI’s annual revenue.
  • Now that the tax amount has shot up to 21%, BCCI may end up losing Rs 800 crore if ICC doesn’t budge in its stand.
  • The other option could be to move the three upcoming global events from India to countries where tax rates are not so high.
  • In both cases, BCCI will be in a lose-lose situation.

World Cup 2023: BCCI in a fix as Finance Ministry levies 21 percent tax, might have to cough up Rs 800 crore: Check WHY?

Though BCCI may have the hosting rights for World Cup 2023, it is important to understand that the ICC also makes money from the tournament. The 21 percent tax will have a huge implications on both boards.

With the broadcast fee for the entire competition standing at around 500 crore, the ICC and BCCI are looking at massive losses. If the 21 percent tax is levied, the government could be making in excess of 100 million from the ICC event. However, the BCCI is still trying to negotiate on the matter and strike a better deal.

There is a serious need for the BCCI to look into the matter with India hosting several ICC events in the near future. If things get complicated and the ICC suffer losses and take a hit in the distribution of money to other ICC members, it will be a serious problem.

World Cup 2023: BCCI in a fix as Finance Ministry levies 21 percent tax, might have to cough up Rs 800 crore: Check WHY?

Follow InsideSport on GOOGLE NEWS



Source link

Related posts

Kyrgios gets cozy with GIRLFRIEND ahead of FINALS, Check OUT

India vs Pakistan LIVE: Virat Kohli pens MS Dhoni tribute ahead of Asia Cup 2022 LIVE: Check OUT

Harshal Patel, Jasprit Bumrah potentially ruled out of T20 WC